The correct answer is D. Fully disclosing all material facts about the proposed by him in the proposal.
Uberrima fides is a Latin phrase that means “utmost good faith.” In the context of insurance, it refers to the duty of both the insurer and the insured to disclose all material facts about the risk being insured. This duty is based on the principle that both parties should have a complete understanding of the risk before the contract is entered into.
If the insured fails to disclose material facts, the insurer may have grounds to void the policy. This is because the insurer may not have been willing to take on the risk if it had known all of the facts. Similarly, if the insurer fails to disclose material facts, the insured may have grounds to sue for breach of contract.
Material facts are those that would have a significant impact on the insurer’s decision to underwrite the risk or on the terms of the policy. They may include things like the insured’s health, driving record, and occupation.
It is important for both the insurer and the insured to be aware of the duty of uberrima fides. By disclosing all material facts, both parties can help to ensure that the insurance contract is fair and equitable.
A. Not disclosing medical facts and information in the proposal is not an example of uberrima fides. The insured has a duty to disclose all material facts, but this does not include medical information.
B. Not revealing all material facts known only to the proposer in the proposal is also not an example of uberrima fides. The proposer has a duty to disclose all material facts, but this does not include facts that are known only to the insurer.
C. Paying premium in time and as and when it is due is not an example of uberrima fides. This is a separate obligation that the insured has under the insurance contract.
Therefore, the correct answer is D. Fully disclosing all material facts about the proposed by him in the proposal.